Question

  

Case Scenario IV

Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant, Sandoz Ltd. Sandoz, based in Minneapolis, Minnesota, began manufacturing Optifast 70, a liquid meal-replacement weight loss program in 1976. The six month program is designed for people who are at least 30 percent or 50 pounds over their ideal weight. Health problems often accompany excessive weight. Optifast provides an opportunity to get rid of the weight fast.

The Optifast program is only available through doctors, hospitals, and medical clinics; a prescription is required to purchase the products. The Optifast program typically begins with the patient being placed on 420 to 800 calorie diet per day of liquid protein for 12 to 16 weeks. Calorie intake is then increased to 1000 or 1200 calories per day for the remainder of the program. The total cost is between $1400 and $2800. Optifast sales grew slowly following its introduction as the medical community and consumers became aware of the program. Sales continued to build slowly until mid November1988. Then Oprah Winfrey announced on her TV talk show that she had lost 67 pounds using Optifast. She appeared on the program in size 10 jeans to prove her point. Here was a celebrity endorsing Optifast without being asked for or paid! Within hours Sandoz received more than 200,000 phone inquires about the Optifast diet program.

The firm does not publish sales figures, but they forecasted a sales increase of from 25 to 30 percent during the six weeks following Oprah’s announcement. In 1989 Sandoz launched a print advertisement program, mostly in professional journals. Its promotional brochure and ad claims included: (1) “ The one that’s clinically proven safe and effective” and (2) “You can call the Optifast program today, and have all you need to control your weight for the rest of your life.” Unfortunately for Oprah, she regained 17 pounds during the first year after she completed the Optifast program. Studies at the University of Pennsylvania suggested that people who undertake quick weight loss programs such as liquid diets are likely to experience weight rebounds. Studies at the University of Michigan indicated that as many as 90 percent of dieters regain weight within five years after losing it. Liquid diets have also been linked with dizziness, headaches, nausea, gallbladder problems, and irregular heartbeat. Thus, there appears to be some difference between claims and use experience.

1. Were any ethical norms or principles violated by Sandoz?

2. Are liquid diet products ethical products? Justify your answer

3. What moral responsibility might Sandoz have considered when developing its promotion messages for the customers

Answer 1

1) Yes Sandoz has violated the ethical norms or principles by launching an advertisement program which is exaggerating in nature.The promotional brochures are misleading the customers and putting false impression of product by claiming that the product is clinically proven and safe to use while as the research has associated the use of liquid diets with various issues such as dizziness, headaches, nausea, gallbladder problems, and irregular heartbeat. Thus the product in real is not safe to use , therefore falsifying the claim. Moreover the promotional strategies also claim that customers can control the weight for the rest of their life which has not proven true incase of Oprah Winfrey. Therefore Sandoz has used bluff marketing to attract customers by promising the use experience of product which is not true as Oprah has regained 17 pounds during the first year after she completed the Optifast program.

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2) No liquid diet products are not ethical products because liquid diet products do not help in overall development nd growth of the body and do not provide rur amount of energy as provided by solid diets. Liquid diets do not provide all the essential requirements of balanced diet required by the body for its j nourishment.. Their prolonged or excess use can cause heath problems. Moreover since liquid diets are also associated with dizziness, headaches, nausea, gallbladder problems, and irregular heartbeat, it can thus be termed as unethical product .

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3) Sandoz owed the moral responsibility of reflecting on the true facts in its promotional campaign or advertisements by giving real impression and highlighting all the possible or potential issues associated with using Optifast program and following a liquid diet. Rather than exaggerating the claims in its brochure it could have instead been transparent with the customers about its short lived effect and the risk of regaining the weight steadily after the diet program. Sandoz might have not made any false claims considering its moral responsibility towards the health of the candidates. Its promotional message should have mentioned only true facts and awarded the customers about the potential risk of regaining the weight.

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